Super Micro Computer Inc (SMCI)

Return on equity (ROE)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Net income (ttm)	US$ in thousands	1,150,944	1,444,626	1,419,998	1,152,666	1,048,991	732,378	612,577	639,998	587,251	578,377	444,142	285,163	183,503	124,959	110,701	111,865	91,153	88,532	84,564	84,308
Total stockholders’ equity	US$ in thousands	6,379,320	6,238,310	5,876,750	5,469,500	5,093,990	3,076,910	2,165,380	1,972,000	1,768,410	1,818,680	1,625,040	1,425,580	1,273,740	1,186,670	1,132,620	1,096,220	1,053,780	1,064,050	1,072,570	1,065,540
ROE		18.04%	23.16%	24.16%	21.07%	20.59%	23.80%	28.29%	32.45%	33.21%	31.80%	27.33%	20.00%	14.41%	10.53%	9.77%	10.20%	8.65%	8.32%	7.88%	7.91%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,150,944K ÷ $6,379,320K
= 18.04%

The analysis of Super Micro Computer Inc.'s return on equity (ROE) over the specified period reveals notable fluctuations and trends indicative of the company's evolving financial performance.

From June 30, 2020, the ROE was relatively modest at approximately 7.91%, reflecting baseline levels consistent with industry norms during that period. A slight decline to 7.88% by September 30, 2020, suggests minimal change in profitability relative to shareholders' equity. Moving into the end of 2020, the ROE experienced some improvement, reaching 8.32% by December 31, 2020, indicating a marginal enhancement in net income generation relative to equity.

The first quarter of 2021 saw a steady upward trajectory, with ROE increasing to 8.65%, suggesting improved efficiency in utilizing shareholders' equity. This positive trend became more pronounced through 2021, with the ROE rising to 10.20% by June 30, 2021, and reaching 10.53% by December 31, 2021. These increases point toward enhanced profitability or better management of equity resources during this period.

The year 2022 marked a significant escalation in ROE, with a sustained and rapid rise from 14.41% at the end of March to 20.00% at the end of June, then further climbing to 27.33% by September, and culminating at 31.80% by year's end. This substantial growth reflects a period of robust profitability, operational efficiency improvements, and possibly favorable market conditions or strategic initiatives that contributed to higher net income relative to shareholders’ equity.

In 2023, the upward momentum continued initially, with ROE peaking at 33.21% at the end of March before experiencing a slight decline to 32.45% by June. Throughout the remainder of 2023, the ROE trended downward, reaching 28.29% in September and 23.80% by December. Such decreases may be attributable to increased equity, reductions in net income margins, or economic factors influencing profitability.

Looking into 2024, the ROE displayed some volatility, initially declining to 20.59% in March, then experiencing a recovery to 21.07% in June, and a subsequent increase to 24.16% in September before settling at 23.16% in December. The final data point for March 2025 indicates a further decrease to 18.04%, suggesting a moderation of previous high returns and potential pressures on profit margins or changes in equity structure.

Overall, the trend in Super Micro Computer Inc.'s ROE demonstrates significant growth from 2020 through early 2022, reaching historically higher levels, which indicates periods of enhanced profitability and operational effectiveness. Post-2022, the ROE exhibits signs of stabilization and moderate decline, reflecting changing market conditions, competitive dynamics, or internal strategic adjustments affecting profitability. The overall pattern underscores a trajectory of substantial recent gains in return on equity, followed by normalization phases.